Abstract: a 3D core sample model for numerical simulation of unsteady state water-flood test performed in lab has been made. The water-oil fluid displacement model is developed and initialized with a purpose to show how the laboratory obtained relative permeability and capillary pressure data can be linked to a numerical model that can provide the same results as an actual physical system. Relative permeability data can then be tuned for a better match with lab data and therefore it can be representative for further reservoir modeling. Experimental laboratory was first analytically interpreted to determine the relative permeability versus saturation data for oil and water, following the initialization of the core model in accordance with the laboratory sample dimensions and geometry, physical and fluid properties, experimental characteristics and results. The model is history matched with production rates reported from laboratory, i.e. by adjusting the laboratory obtained relative permeability curves in accordance with Corey-Brooks correlation. Core-flood simulation results are compared to experimental results and shown in a chronological way according to 4 different types of tested grid blocks versus relative permeability data. Experimental data is successfully and accurately matched with every model, all of which required slightly different water and oil relative permeability curves in relation to one another. The results confirmed the thesis, demonstrated the sensitivity of the precise micromodel (one of which consists out of over 15 thousand grid block cells) and showed how it can be a valuable tool for observing important physics including heterogeneity on a small precise scale that could be translated on to a larger scale dimensions, that of a reservoir.